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Thursday, 12 May 2016

Difficult to sit on the Fence: FUEL SUBSIDY: YES OR NO?

It's difficult to sit on the fence but even non economics must recognise this.

- Does the price of a barrel of crude oil vary with a nation's minimum wage?
- Does it vary by which region of the world you live.
- Does the refining cost of petrol vary according to a nation's minimum wage. 
- What role has national productivity index on national revenue?
- If we subsidise fuel, can't we subsidise feeding, housing and car ownership, indeed every requirements of an average Nigerian?

The truth is that each country choose what it subsidises based on what it can afford. UK is subsidising health through NHS and to an extent housing. Subsidising fuel in an opaque system riddled with corruption hurts the populace more that it helps them. Sixteen years of subsidy has only created emergency billionaires.

If there should be subsidy in Nigeria make it health, housing and education. And democratise it.

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